Middle East hotel industry records positive June performance

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burj al arab madinat jumeirah
A view of Madinat Jumeirah and Burj Al Arab 7 star hotel in Dubai, UAE. Photo – Phombo.com

The Middle East North Africa region posted a positive performance result in June 2012 despite lingering economic concerns, a global travel research firm said on Tuesday.

The region’s occupancy increased 8.7% to 58.2% during the month while its average daily rate fell 1.8% to $136.16. Revenue per available room also rose 6.8% to $79.22, the Smith Travel Research Global survey revealed.

MEA region reported a 9.4% occupancy increase to 60.6% on a year-to-date basis with a 1.5% average daily rate (ADR) decrease to $162.37, and a 7.7% rise in revenue per available room (RevPAR) to $98.38.

“Middle Eastern hoteliers reported improving occupancy and average room rates boosted by double-digit demand growth for the first half of 2012 compared to the first six months in 2011,” Elizabeth Randall, managing director of STR Global, said. “However, the occupancy and average room rate for the first half of 2012 is still behind its peak performance of the first six months in 2008. For the first six months of 2008, the region achieved 70.9% occupancy and rate of $235.64. The region saw the highest increase in new room supply compared to the other world regions since 2008,” she added.

Africa reported continued occupancy improvements whilst average room rates remain under pressure compared to the first half 2011. In contrast, looking back at the first half of 2008, the Africa region surpassed its average room rate performance by US$12.68.

The report disclosed top Middle East destination Dubai achieved the largest ADR increase, rising 9.8% to $170.07, followed by Amman with an 8.2% increase to $155.51. Doha, another emerging tourist destination, ended the month with the largest occupancy decrease, falling 11.8% to 49.4%.

Oman’s capital Muscat, a promising tourist destination, also registered a strong performance by rising its occupancy 34.1% to 51.6 %, the largest increase in that metric, followed by Amman, Jordan, with a 15% increase to 67.8%.

Abu Dhabi, the UAE capital, fell 15.4% in RevPAR to US$66.13, reporting the largest decrease in that metric.

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